Equitrans Midstream Corp. said on Oct. 12 it will evaluate the cost and timing of the completion of the Mountain Valley natural gas pipeline based on ongoing litigation and upcoming federal approvals.
The U.S. Federal Energy Regulatory Commission (FERC) gave Mountain Valley permission late Oct. 9 to resume some construction on its $5.4 billion-$5.7 billion pipeline, which runs from Virginia to West Virginia.
“As the litigation process progresses and as we receive additional information from FERC regarding potentially releasing the remainder of the route for construction, (Mountain Valley) will continue to evaluate its current construction plans, budget and schedule,” Equitrans said.
Mountain Valley is one of several U.S. oil and gas pipelines delayed by regulatory and legal fights with environmental and local groups that found problems with federal permits issued by the Trump administration.
FERC suspended work on Mountain Valley a year ago due to litigation over the project’s Biological Opinion from the U.S. Fish and Wildlife Service (FWS), which allows construction in areas inhabited by endangered and threatened species.
The FWS issued a new Biological Opinion in early September. Environmental and other groups continue to challenge the latest FWS approval and other federal permits in court.
Analysts at Height Capital Markets said they expect the project to enter service in mid-2021 but noted timing could slip to third-quarter 2021 if legal challenges prevent some stream crossings.
“We acknowledge the legal challenge that is currently before Fourth Circuit Court of Appeals and have agreed to temporarily delay stream and waterbody activities out of respect for that process,” Equitrans said.
Equitrans has said it expects the pipeline, which is about 92% complete, to enter service in early 2021.
In February 2018, when Equitrans started construction, it estimated Mountain Valley would cost about $3.5 billion and be completed by the end of 2018.
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